First Time Home Buyers Mortgage

Congratulations you have decided to buy your first home! As a First Time Home Buyer in Canada the process can be overwhelming, but don't worry we are here to guide you every step of the way. We will make sure you understand all your options and recommend financing solutions to get your mortgage approved at the lowest possible rate and best terms possible for you. We also work closely with real estate agents, lawyers, and insurance brokers in every city across Canada to make sure you are taken care of from start to finish. Now let's get started!

Download the FREE First Time Home Buyers Step by Step Guide

first time home buyer ebook

Three Ways to Get Started...

The first step is getting pre-approved before you start shopping for your first home.

Online Application

Complete the full online mortgage application to get a full pre-approval.

First Time Home Buyers Mortgage Application

Contact a Broker

Contact a mortgage broker to discuss questions or to arrange an appointment.

Contact a Mortgage Broker

Quick Application

Use our quick app to have one of our local mortgage brokers contact you.

First Time Home Buyer Quick App

How to Qualify for a Mortgage

There are a few things banks require to approve you for a mortgage...

employment income

Employment - Income is required to ensure you can make the payments. A full time permanent position with no probation period is required in most cases but if you have worked in a part time position for at least two years we can also use that income to qualify. Income that includes over time, commission, bonuses or self employed earnings must have a minimum 2 year history in order to qualify. Your income level will determine how much you can spend.

established credit

Good Credit - You must be able to show you can manage money. A credit check will show us your score which is determined by how well you manage and pay credit cards, loans, and lines of credit. If you have late payments, collections, or other bad debts this will significantly hurt your chances at being approved. The lenders like to see a minimum 2 year history of credit with good repayment history.

employment income

Down Payment - A down payment is very important when buying a home. If you have very good credit it is still possible to purchase a home with as little as 5% down payment. If you have poor credit a much larger down payment could be required (example: 20%). In most cases with good or average credit a minimum 5% down payment is needed and will allow you to qualify for best interest rates.

If you have solid employment, good credit, and a down payment, there is a good chance you will be approved for mortgage financing. The down payment can come from a number of sources including savings, investments, RRSP's (HBP), or even a gift from an immediate family member.

First Time Home Buyer Programs

Government programs available to first time home buyers in Canada.

RRSP Home Buyers Plan (HBP)

RRSP Home Buyers Plan

The Home Buyers' Plan (HBP) is a government program that allows first time home buyers to withdraw up to $25,000 from their registered retirement savings plan (RRSPs) to buy a first home which must be used as a principle residence.

Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or they may not be deductible for any year.

Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your balance is zero or it will be included in your income.

Click here to learn more about the RRSP Home Buyers Plan

First Time Home Buyers' Tax Credit (HBTC)

first time home buyer tax credit

The HBTC is a non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009.

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750. However, if the total of your non-refundable tax credits is more than your federal income tax, you will not receive a refund for the HBTC.

You will qualify for the HBTC if you or your spouse or common-law partner acquired a qualifying home; and you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.

Click here to learn more about the First-Time Home Buyers' Tax Credit